Cory beat me to this post (thank you). I figured he would do a much better job of analyzing the situation;
As a primary solution, ARI advocates coordination among all actors in affordable housing: the city, state, non-profits, and developers.
But remember: collectivism is a response to market failure. Even amidst 2.3% unemployment, Sioux Falls employers are failing to provide their scarce workers with the wages they need to support the renovation and construction of decent cheap houses. Since our captains of industry and bumper-car owners are being stingy, we have to run around drawing cooperation lines on concept maps and pouring tax incentives and federal grants into housing efforts.
Ironically I had this conversation Saturday with Mayoral hopeful Nick Weiland. I told him that the city needs to have less focus on annexation and urban sprawl and a push for fixing up our core, central and proper areas of Sioux Falls, which basically is 41st street to Russell and Kiwanis to Cleveland Ave (my educated guess). I’m not just talking sewer/water, roads and curb and gutter, I’m talking properties. This area of town has some of the most affordable housing in our city, unfortunately many of these single family homes and four-plex apartments also need some TLC. But they are perfect for affordable housing. The solution I have offered for several years is to change our TIF program to include landlords and single family homeowners willing to invest in these core houses and apartments and have any other loose ends tied up with low interest or no interest loans from community development or other state and federal programs. If we can give TIFs to luxury condos (Washington Square) we can certainly turn the program over to people willing to help out with our affordable housing glut.
The other issue is that housing costs are not in line with wages in Sioux Falls, and the regressive sales tax system is not helping matters.
At the end of the day, while a study like this is comprehensive and needed, it didn’t tell us anything new. It takes more then a report to change things, it takes a big boot up the asses of our local and state lawmakers to change the rules of tax incentives to get the ball rolling on this.